[powerapple]

Not only taking currency out of the country, the same limit applies to bringing money into the country. The control is over foreign exchange. If you have a valid reason, buying a house abroad, going to study, go traveling, you can exchange foreign exchange beyond the $50k limit.

I'd say it has something to do with the policy placed when the country needed dollars in 70s and 80s, and no one is taking the risk of removing it. China doesn't want to free foreign exchange on Chinese Yuan, mainly because it has shielded its financial institutes from western hedgefunds attacks. The Chinese financial institutes are new, and not as sophisticated as the western counterparts, IMO, this has been something working well for China, and I would hope it can continue to serve this purpose.